Consumers who do not likelyunderstand the risk or value-related to Bitcoin can suffer huge losses. Cryptocurrency is ill-suited to smallinvestors.

The Financial Conduct Authority(FCA) stated that derivatives and exchange-traded notes (ETNs), “suffer harmfrom sudden and unexpected losses if they invest in these products.”

There is a lot of difficulty inevaluating them due to their extreme volatility, and consumers do not have aclear understanding of what they are buying in to.

Christopher Woolard stated, “Aswith our work on the wider CFD and binary options markets, we will act when wesee poor products being sold to retail consumers. These are complex contractsbuilt on top of complex assets.”

A group of Democrats in theirletter to Facebook Inc. stated: "If products and services like these areleft improperly regulated and without sufficient oversight, they could posesystemic risks that endanger the U.S. and global financial stability."

The letter further stated thatthe scant information concerning the potential use of Libra and Calibra and thelack of regulatory protections for the currency, to have eventually exposed theenormous risks associated with cryptocurrency.

The letter elaborated on how thevulnerabilities can probably be exploited by bad actors concerningcryptocurrencies, wallets, and exchanges.

The government is yet to identifylegislative solutions, and therefore they have requested Facebook to hold offon implementing their Libra plans until the Congress, and the regulators havehad the time to hold public hearings to examine the risks and benefits.

They stated thus: “Failure to cease implementation before wecan do so, risks a new Swiss-based financial system that is too big to fail.”

Cuba has recently announced itsintention to consider using cryptocurrency to bolster on their finances. Justlike Venezuela, Cuba is suffering from more robust forms of U.S. led sanctions,and the country is suffering from a political and financial crisis of its own.

Miguel Diaz-Canel, the presidentof Cuba, stated that the cryptocurrency plan is focused on improving nationalproduction and demand in a way to improve on the growth of the country's economy.It is noted that the current cryptocurrency plan will boost pensions and wagersfor the employees in public administration, state-run media, and socialservices, eventually doubling their average monthly wages.

Of note, Donald Trump, the U.S.president, included the Venezuelan cryptocurrency to the list of theirassets. Even those companies who areassisting in avoiding the sanctions might get into hot water. Of note, a Russian Bank has been subject topenalties to have financed for the petro.